Customer Curiosity is The New Competitive Advantage

Everyone is talking about how AI will change shopping. And they're right. AI is already transforming the way customers search, compare products and discover brands. Search is becoming smarter. Recommendations are becoming more personalised. The path to purchase is becoming faster and more efficient.

Which is why Kmart's new concept store in Melbourne caught my attention. At first glance, it feels like a retail story. A new format. A new customer experience. A new way to showcase homewares and furniture. I think it's something much bigger.

Because while AI is becoming exceptionally good at helping customers find what they're looking for, some of the world's most successful retailers have built their growth on something entirely different.

Curiosity.

The ability to help customers discover something they weren't looking for. And in an increasingly AI-driven world, that might become one of the most valuable competitive advantages a brand can create.

Why Customers Love Brands Like Kmart, IKEA And Mecca

For years, marketers have obsessed over reducing friction. Faster websites. Faster checkout experiences. Faster delivery. Faster search. AI will make all of that even better. But some of the most loved retail experiences in the world aren't built around efficiency. They're built around exploration. Discovery. Curiosity.

Think about Kmart. People don't film TikTok hauls because they successfully found the storage container they went in for. They film them because of everything they discovered along the way. The unexpected bargain. The clever home organisation product. The seasonal trend they didn't know existed. The product recommendation they can't wait to share with friends. The haul becomes proof of what curiosity uncovered.

In many ways, Kmart has turned discovery into content. Customers don't just buy products. They share the experience of finding them. The same behaviour is visible across retail. Chemist Warehouse is often referred to as "Girl Bunnings" because customers rarely leave with just the prescription they came for. Aldi's famous middle aisle has become a cultural phenomenon because customers never know what they'll discover next.

Social media is full of "girl math" moments where shoppers proudly share purchases they never intended to make. Not because they were manipulated. Because they discovered something they genuinely loved. That's an important distinction. The world's best retailers don't simply help customers buy. They help customers explore.

Is Kmart Changing Its Competitive Set?

The more I think about Kmart's concept store, the more I wonder whether this is less about products and more about positioning. Historically, Kmart competed with retailers like Target and Big W. But when a customer is furnishing a living room, styling a bedroom or organising a pantry, is that really the competitive set anymore?

Increasingly, Kmart is competing for consideration alongside IKEA, Adairs, Freedom, Temple & Webster and Fantastic Furniture. Not because the products are identical. Because the customer need is the same. Inspiration.

The timing is interesting. Cost-of-living pressures continue to influence household spending decisions. Consumers may postpone a renovation. Delay upgrading a car. Think twice about a luxury purchase. But that doesn't mean aspiration disappears. People still want homes that feel welcoming. Stylish. Comfortable. A reflection of who they are.

Historically, economic uncertainty has often shifted spending from major purchases towards smaller, more affordable ways of improving everyday life. Perhaps that's why Kmart's move into a more immersive home environment feels so significant. This isn't simply about selling candles, cushions or storage containers. It's about helping customers imagine what their home could become. And imagination has always been one of retail's most powerful sales tools.

How Retailers Engineer Curiosity

One of the biggest mistakes marketers make is assuming discovery happens naturally. It doesn't. The world's best retailers engineer it. Every aspect of the retail environment is carefully designed to influence behaviour. Music influences pace. Mood influences dwell time. Dwell time influences basket size. Retailers have understood this for decades.

Coles and other supermarkets have long used music strategically because it influences how customers move through a store and how long they stay. Luxury retailers use scent because scent influences memory and emotional connection. Hotels do the same. Casinos do the same. Apple uses space. IKEA uses room settings. Mecca uses consultation and education. Chemist Warehouse uses merchandising density. Aldi uses surprise. Each is trying to achieve the same outcome. To create moments of curiosity.

The best retail environments aren't simply stores. They're carefully orchestrated experiences designed to encourage customers to stay longer, explore more and discover something unexpected. The bookshelf isn't just a bookshelf. It's part of a lifestyle. The dining table isn't just a product. It's part of a home. The candle isn't just a candle. It's part of an atmosphere. The best retailers don't sell products. They sell possibilities.

Why Curiosity Matters In An AI World

This is where Kmart's concept store becomes particularly interesting. Not because it's a store. Because it's a signal. A signal that some retailers understand the future may not be a battle for transactions. Technology is already making transactions easier. The future may be a battle for curiosity.

AI is becoming exceptionally good at helping customers find what they want. But finding and discovery are not the same thing. Finding is efficient. Discovery is emotional. Finding fulfils a mission. Discovery expands one. The brands that win won't necessarily be the ones with the fastest checkout process or the smartest recommendation engine. They'll be the brands that create reasons for customers to explore, discover and engage.

That's why we're seeing continued investment in physical experiences from brands like Mecca, Apple and Nike. Not because physical retail is replacing digital. Because each channel plays a different role. Digital is brilliant at helping customers find. Physical is brilliant at helping customers discover. The retailers that win will understand how to do both.

Could Curiosity Become A New Brand Metric?

Marketers already measure awareness. Consideration. Preference.Net Promoter Score. Conversion. All important metrics. But what if we're missing something? What if curiosity is a leading indicator of future growth? Before customers recommend a brand, they explore it. Before they advocate for a brand, they discover it. Before they love a brand, they spend time with it. Perhaps curiosity isn't a replacement for traditional brand metrics. Perhaps it sits alongside them.

If that's true, then curiosity becomes measurable. Not through surveys alone. Through behaviour. Did customers purchase beyond their original mission? How many categories did they shop? What percentage of basket value came from discovery? How many customers created content, reviews or recommendations based on products they found unexpectedly? How often do customers return because they want to see what's new?

Those are not measures of awareness. They're measures of engagement. Exploration. Curiosity. And perhaps that's where the opportunity lies.

In my recent article on the AI Trust Index, I argued that trust is becoming one of the most important assets a brand can build because trust influences whether customers — and increasingly AI platforms — recommend your brand. Curiosity may play a similar role. Trust determines whether customers choose you. Curiosity determines whether they spend time with you. And the brands that earn both may have a significant advantage.

Final Thoughts

For years, retailers have spent enormous amounts of time measuring what customers buy. Sales. Conversion. Basket size. Average transaction value. All important metrics. But perhaps the next frontier is understanding what made customers buy more than they planned. What encouraged them to explore another aisle. Consider another category. Add another product to the basket. Talk about the experience online. Recommend it to a friend.

Because curiosity sits upstream of discovery. Discovery sits upstream of advocacy. Advocacy sits upstream of trust. And trust sits upstream of growth. AI will undoubtedly help customers find products faster than ever before. But the brands that win may be the ones that create enough curiosity for customers to keep exploring. Perhaps that's what Kmart's concept store is really testing. Not whether customers will buy more homewares. But whether curiosity can become a competitive advantage. And in a world increasingly optimised for efficiency, that might be one of the most valuable assets a brand can create.

About the Author

Alicia Rieniets is the founder of CMO On Call, a fractional marketing consultancy helping organisations drive growth through aligned brand, customer and performance strategies. With over 20 years’ experience across brands including Ford, Bupa, Australia Post and UniSuper, Alicia is known for transforming marketing functions into commercially driven systems that deliver measurable results. She works closely with leadership teams to simplify complexity, unlock growth and build marketing that works.